NOTE L – EARNINGS PER SHARE

The following is the computation of basic and diluted earnings per share (EPS) from continuing operations attributable to Ashland. Stock appreciation rights (SARs), stock options and warrants available to purchase shares outstanding for each reporting period whose grant price was greater than the average market price of Ashland Common Stock for each applicable period were not included in the computation of income from continuing operations per diluted share because the effect of these instruments would be antidilutive. The total number of these shares outstanding was approximately 0.7 million and 0.1 million at March 31, 2018 and 2017, respectively. Earnings per share is reported under the treasury stock method.

	Three months ended				Six months ended
	March 31				March 31
(In millions, except per share data)	2018		2017		2018		2017
Numerator
Numerator for basic and diluted EPS -
Income (loss) from continuing operations	$	66	$	29	$	59	$	(37	)
Denominator
Denominator for basic EPS - Weighted-average
common shares outstanding		63		62		63		62
Share based awards convertible to common shares (a)		1		1		1		—
Denominator for diluted EPS - Adjusted weighted-
average shares and assumed conversions		64		63		64		62

EPS from continuing operations
Basic	$	1.06	$	0.46	$	0.94	$	(0.59	)
Diluted		1.04		0.46		0.93		(0.59	)

(a)

As a result of the loss from continuing operations attributable to Ashland during the six months ended March 31, 2017, the effect of the share-based awards convertible to common shares would be antidilutive. In accordance with U.S. GAAP, they have been excluded from the diluted EPS calculation.